VANCOUVER, BC and PORTLAND, OR, Jan. 30, 2012 /PRNewswire/ - Naturally Advanced
Technologies Inc. (NAT) (OTCBB: NADVF) (TSXV: NAT), which produces and
markets one of the first new natural fibers in decades, CRAiLAR®,
announced it will partner with Tuscarora Yarns, one of the world's
premier yarn innovators, to explore a host of new blended yarns using
CRAiLAR Flax.

Under the terms of the non-exclusive, non-transferable license,
Tuscarora Yarns will design and manufacture highly specialized CRAiLAR
Flax fiber yarns and related products for sale and distribution to
third party licensees of CRAiLAR.

"Tuscarora is one of the most innovative yarn spinners in the world, and
has the ability to prepare us for entry into several unexplored
categories such as couture fashion, sports performance, extreme weather
gear, and certain sectors of home furnishings," said Ken Barker, CEO of
NAT. "This agreement will seek to push the applications of CRAiLAR
beyond our first phase of cotton blending and establish new market
sectors for this unique and sustainable natural fiber."

The proprietary CRAiLAR enzymatic process, developed by Vancouver-based
NAT in conjunction with the National Research Council of Canada, turns
natural bast fibers—such as flax, hemp, jute, and kenaf - into soft,
finished textiles that are as comfortable as cotton, but more durable
and eco-friendly. The result is a product that can integrate with
existing technology for spinning, weaving, or forming fabric, which can
be used across categories such as apparel, footwear, work wear, and
domestic textiles. Additionally, CRAiLAR can be used for a number of
industrial applications. Since March 2011, NAT has announced
commercialization or development agreements for CRAiLAR Flax fiber with
HanesBrands, Georgia-Pacific, Levi Strauss & Co., Cintas, Carhartt,
Ashland, Westex, Brilliant Global Knitwear and Target.

About Tuscarora Yarns
Tuscarora Yarns is a maker of specialty yarns headquartered in Mt.
Pleasant, N.C. The company has been a reliable resource for the apparel
and textile industry since 1899. Tuscarora is one of the leading
manufacturers of heather and mélange yarns in the world. The company
also serves the automotive and home furnishings markets. For more
information about the company, please visit www.tuscarorayarns.com.

About Naturally Advanced Technologies Inc.
Naturally Advanced Technologies Inc. develops renewable and
environmentally sustainable biomass resources from flax, hemp and other
bast fibers. The Company, through its wholly owned subsidiary, CRAiLAR®
Fiber Technologies Inc., has developed proprietary technologies for
production of bast fibers, cellulose pulp, and their resulting
by-products in collaboration with Canada'sNational Research Council.
CRAiLAR technology offers cost-effective and environmentally
sustainable processing and production of natural, bast fibers resulting
in increased performance characteristics for use in textile,
industrial, energy, medical and composite material applications. The
Company was founded in 1998 as a provider of environmentally friendly,
socially responsible clothing. For more information, visit www.naturallyadvanced.com.

Neither the TSX Venture Exchange Inc. nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.

Forward-Looking Statement Disclaimer This news release includes certain statements that may be deemed "forward-looking statements". All
statements in this news release, other than statements of historical
facts, are forward-looking statements. Forward-looking statements or
information are subject to a variety of risks and uncertainties which
could cause actual events or results to differ from those reflected in
the forward-looking statements or information and including, without
limitation, risks and uncertainties relating to: any market
interruptions that may delay the trading of the Company's shares,
technological and operational challenges, needs for additional capital,
changes in consumer preferences, market acceptance and technological
changes, dependence on manufacturing and material supplies providers,
international operations, competition, regulatory restrictions and the
loss of key employees. In addition, the Company's business and
operations are subject to the risks set forth in the Company's most
recent Form 10-K, Form 10-Q and other SEC filings which are available
through EDGAR at www.sec.gov. These are among the primary risks we foresee at the present time. The
Company assumes no obligation to update the forward-looking statements.